Manufacturing jobs plummet

Union leaders have called on the Government to tackle the "crisis" in manufacturing after new figures showed employment in the sector falling to a new low.

Ministers maintained that the labour market remained strong, with near record levels of people in work and an increase in permanent jobs.

But unions said 10,000 jobs were still being lost every month in manufacturing firms as employment in the sector continued to plunge.

The number of manufacturing jobs fell by 125,000 over the past year to just under 3.5 million, the lowest since records began in 1984.

Derek Simpson, general secretary of Amicus, said: "This is more evidence of the crisis in manufacturing. High quality, well paid jobs are becoming an endangered species and the Government must act before they become extinct."

The number of people out of work between June and August rose by 5,000 to 1,479,000, the first time the figure has risen since the spring, the data from the Office for National Statistics showed.

The employment total fell by 9,000 over the same quarter, the first time the figure has dropped back in almost a year.

The number of people claiming unemployment related benefit fell by 1,900 last month to 929,800, the lowest figure since 1975.

The claimant count has fallen by an average of 6,100 a month for the past quarter and the 3.1% jobless rate has remained unchanged for 21 months in a row.

The unemployment rate, covering everyone looking for work, remained at 5% for the second consecutive quarter, although it increased slightly among women.